Reddit Offloads Majority of Crypto Holdings Amid Declining Ad Revenue

Reddit's recent SEC filing revealed that the social media platform sold most of its cryptocurrency holdings in the third quarter of 2024, primarily consisting of Bitcoin and Ethereum.

The total proceeds from these sales were approximately $6.869 million, but the gains were deemed minimal. The company had previously invested excess cash in these cryptocurrencies and continued to acquire Ethereum and Polygon’s token, now known as POL, for virtual goods transactions.

Reddit emphasized that the sales of ETH and POL were not significant for the fiscal year ending December 31, 2023, or for the nine months ending September 30, 2024.

Since 2022, Reddit has gradually added cryptocurrencies to its treasury and has limited its investments to assets that U.S. regulators have identified as “likely not securities.”

Additionally, the filing highlighted a decline in advertising demand due to global economic challenges, particularly in sectors like technology, media, entertainment, and cryptocurrency.

Despite this downturn, Reddit has somewhat offset losses by diversifying into other advertising categories.